A two-week-long steady decline in oil prices ended abruptly Wednesday as prices shot up by $2 a barrel on word that U.S. supplies of crude took a sharp and unexpected dip last week.
The oil news clearly didn’t help the stock market, nor did a bizarre incident in downtown Washington, where an office building was evacuated after workers complained of eye irritation. Authorities initially announced a "mass casualty" situation.
Fearing a terrorist attack, investors sent the Dow Jones plunging more than 60 points. It was then determined that the Washington incident was caused by pepper spray in the hands of teenagers.
Markets Mixed
Stocks rebounded but failed to recover fully. The markets finished mixed, with the Dow losing 5 points to close at 10,168.83, while the Nasdaq climbed 12.31 to 1,850.41. The S&P 500 was also higher by less than 2 points to 1,105.92.
Crude prices surged after the Energy Department said stockpiles in the U.S. fell more than 4 million barrels last week. Analysts were expecting stockpiles to at least hold steady.
The news stopped a lengthy stretch of days in which oil prices had steadily declined. Oil had continued to tumble from record levels even amid renewed violence in Iraq and other factors. On Wednesday, futures finished up $1.78 in New York trading to $43.90.
The Pepper Spray Plunge
The Washington incident began around noon when several workers at an I Street office building began complaining of burning eyes, coughs and breathing problems. Firefighters pulled the fire alarm, causing 1,500 people to evacuate.
A decontamination area was set up in the middle of an intersection, and a few people were briefly quarantined in a nearby park.
The building is located near the World Bank and the headquarters of the International Monetary Fund, both of which were identified last month as possible terrorist targets.
The location stoked fears that an attack had taken place, causing the stock market to dive. Prices gained ground only after authorities announced that the offending substance was pepper spray.
According to the Washington Post, a group of youths discharged the pepper spray near the building's air intake vent, which caused the irritating spray to spread throughout the building.
Waiting, Watching
In more mundane news, the Institute for Supply Management said manufacturing activity rose for the fifteenth straight month, but grew at a slower rate than in July and fell just short of analyst forecasts.
Meanwhile, the Commerce Department said construction spending hit an all-time high in July, rising .4 percent over June. Both public projects and private construction work was up, the report said.
Two more reports of different types could move the markets later in the week.
Intel and Employment Figures
On Thursday, Intel (Nasdaq: INTC) 
is expected to deliver its mid-quarter update, and some analysts have been warning that it could show lower revenue and profit levels than Intel promised at the start of the quarter.
On Friday, August employment statistics will be released. Numbers for both June and July were disappointing after a strong spring of job growth.
August numbers are seen as especially important because large numbers of voters generally start paying attention to the presidential campaign early in September and because recent polls have suggested that weak job data has made consumers –- who account for two-thirds of the economic activity in the U.S. –- more cautious.
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